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Brimdex

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How It Works

Learn everything you need to know about trading on Brimdex

Overview

Brimdex is a decentralized prediction market platform built on Somnia where you can trade on whether a cryptocurrency's price will stay within a specific range or break out of it by a set expiry time.

The Core Concept

Each market asks a simple question: "Will the asset's price be between $X and $Y when this market expires?"

  • You choose a side: BOUND (price stays in range) or BREAK (price goes outside range)
  • Markets have fixed expiry times (24 hours, 7 days, or 30 days)
  • At expiry, the final price determines which side wins
  • Winners split the distributable amount after a 2% protocol fee on the total trader pool (combined BOUND + BREAK USDC, excluding bootstrap liquidity)

How It Works

  1. Market Creation: A new market is created with a price range (e.g., ETH between $3,000 and $3,100) and an expiry time. The market starts with initial liquidity to establish a 50/50 probability.
  2. Primary Trading: You deposit USDC to buy BOUND or BREAK tokens. The price of each token updates dynamically based on how much money is on each side—this is called a parimutuel system.
  3. Secondary Trading: You can trade your tokens with other users on the orderbook before expiry. This lets you exit early or enter at different prices.
  4. Settlement: When the market expires, the final price from an oracle determines the winner. If the price is within the range, BOUND wins. If outside, BREAK wins.
  5. Redemption: Winners can redeem their tokens for USDC based on the redemption rate (total winnings divided by winning tokens). Losers' tokens become worthless.

Key Advantages

  • No counterparty risk: All funds are held in smart contracts
  • Transparent pricing: Prices update in real-time based on actual market activity
  • Early exit: Trade your positions on the orderbook anytime before expiry
  • Automatic settlement: Markets settle automatically using oracle prices